3 ways to sellyour suppliers oncredit card payments

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Paying your suppliersby credit card canbenefit your business via:

Improvedcash flow

Better managed finances

Reduced expenses

3

Both you and your bank can play a role in making that happen.

Before you can unlock those benefits, your suppliers must agree to accept cards.

4

Your bank helps through“supplier enablement”

— working with you and your

suppliers to facilitate the transition

to electronic payments.

5

Your most important job?

See the issue from

your suppliers’

perspective — so you

can explain how

this change will benefit

them.

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#1Shorter payment terms

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For example:

If you usually pay in 60 days

by check, offer 14 days by

card. That provides a cash

flow boost to offset the

payment fees.

Your suppliers will

incur a small card

processing fee.

Offer early payment

or shorten payment

terms so they can

further benefit.

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BONUS:

Those funds are

guaranteed and payment

is typically funded in 24-48

hours, unlike snail-mail

paper checks.

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#2Simplified accounts receivable

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Checks require the supplier to:

1. Open envelopes

2. Reconcile payments

3. Endorse checks

4. Make deposits

5. Wait for funds from

check processing

Accepting cards saves them time and money.

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The best solution:VCNs

Virtual card numbers (VCNs) are unique,16-digit numbers generated for specific transactions.

VCNs are the most secure and fraud-preventative credit card transaction

VCNs make it easier to identify and reconcile each payment.

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#3A safer payment process

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Checks aremost vulnerable.

of companies surveyed have experienced check fraud or attempted check fraud.

71%

— Association for Financial

Professionals

2016 report

Q: Why should your suppliers

care?

A: If you are targeted, their

payment will be delayed while

you sort out the problem.

Card payments reduce that risk.

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Key takeaways:

You can offset your suppliers’ transaction fees by

offering shorter payment terms.

Card payments (especially VCNs) streamline

accounts receivable.

Card payments are safer.

Facilitating new payment setup

3

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Your bank may provide supplier enablement services like:

Explaining benefits

2

Contacting suppliers

1

But …

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… you can contribute by understanding your suppliers’ point of view and explaining how they benefit.

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BONUS:

Enhance your supplier

relationships.

Creating a faster, more secure payment process can

strengthen your ties with suppliers — which is good for

your business and theirs.

SVB’s Global Treasury and Payments Advisors can share

more details about supplier enablement.

©2017 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary

of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB

Financial Group, used under license. B-16-15179 Rev. 02-16-17.

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